Boohoo bosses could pocket £150m under new incentive plan

Booses at Boohoo could pocket a £150m bonus if shares of the fast-fashion retailer rise 66% over a three-year period.

The AIM-listed company announced a new management incentive plan on Friday to ensure the leadership team is "motivated to deliver long-term sustainable growth for its shareholders, as the group targets a continuation of the exceptional levels of performance that it has delivered since IPO".

Under the terms of the scheme, Boohoo bosses could share a bonus of up to £150m if the company’s market capitalisation rises to £7.55bn over a three-year performance period, which runs until 17 June 2023.

The starting market capitalisation of the scheme is £4.54bn, based on the average share price of the group for a period of 30 trading days ending on 16 June 2020.

Participants in the scheme include co-founders Mahmud Kamani and Carol Kane, who will receive 33.3% of the payout each, and chief financial officer Neil Catto, who will receive 6.67%.

Boohoo, which owns PrettyLittleThing and Nasty Gal, among other brands - said the incentive plan will not be put to a shareholder vote.

"The Remuneration Committee has undertaken some shareholder consultation and taken on board feedback received," it said. "The Remuneration Committee believes that the interests of shareholders will be best served by granting the awards immediately to the recipients without recourse to a shareholder vote, which will ensure that they are immediately incentivised to deliver stretching share price growth for the benefit of all Boohoo's shareholders as the group executes its multi-brand online strategy."